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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
)
In the Matter of ) Account No. 201032080008
UNIVISION RADIO, INC. ) FRN 0004945838
)
)
)
ORDER
Adopted: July 26, 2010 Released: July 26, 2010
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into by the
Enforcement Bureau and the Media Bureau of the Federal Communications
Commission (the "Bureaus") and Univision Radio, Inc. ("Univision"). The
Consent Decree terminates the investigations initiated by the Enforcement
Bureau against Univision for possible violations of Sections 317 and 507
of the Communications Act of 1934, as amended (the "Act"), and Section
73.1212 of the Commission's Rules.
2. The Enforcement Bureau and Univision have negotiated the terms of a
Consent Decree that resolves these matters, and the Media Bureau has
concurred. A copy of the Consent Decree is attached hereto and
incorporated herein by reference.
3. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree and terminating the referenced investigations.
4. In the absence of material new evidence relating to this matter, we
conclude that our investigations raise no substantial or material
questions of fact as to whether Univision possesses the basic
qualifications, including those related to character, to hold or obtain
any Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to Section 4(i) of the
Communications Act of 1934, as amended, and Sections 0.111 and 0.311 of
the Commission's Rules, the attached Consent Decree IS ADOPTED.
6. IT IS FURTHER ORDERED that all investigations regarding possible
violations by Univision Radio, Inc. of 47 U.S.C. S:S: 317, 508 and 47
C.F.R. S: 73.1212 being conducted by, or pending before, the Federal
Communications Commission ARE TERMINATED, and that any third-party
complaints and/or information alleging violations of the same by Univision
pending before the Federal Communications Commission or the Bureaus as of
the date of the Consent Decree ARE DISMISSED.
7. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent by first class certified mail, return receipt requested, to
David Solomon, Esquire, Wilkinson Barker Knauer, LLP, 2300 N Street, N.W.,
Suite 700, Washington, D.C. 20037, and to Mace Rosenstein, Esquire,
Covington & Burling LLP, 1201 Pennsylvania Avenue, N.W., Washington, D.C.
20004.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
)
In the Matter of ) Account No. 201032080008
UNIVISION RADIO, INC. ) FRN 0004945838
)
)
)
CONSENT DECREE
1. The Enforcement Bureau and the Media Bureau of the Federal
Communications Commission ("Commission" or "FCC") and Univision Radio,
Inc., for itself and on behalf of its direct and indirect subsidiaries
that hold FCC authorizations, and on behalf of WLII/WSUR Licensee
Partnership with respect solely to its AM or FM radio station
authorizations (collectively, the "Company"), hereby enter into this
Consent Decree for the purpose of resolving and terminating certain
investigations currently being conducted by, or pending before, the
Commission relating to compliance with the Sponsorship Identification
Laws, as defined below, by Company Stations.
2. For purposes of this Consent Decree the following definitions shall
apply:
(a) "Act" means the Communications Act of 1934, as amended, 47 U.S.C.
S: 151 et seq.;
(b) "Adopting Order" means an order adopted by the Bureaus adopting this
Consent Decree, without any modifications adverse to Company or any
Company Station;
(c) "Bureaus" means the Enforcement Bureau and the Media Bureau of the
Federal Communications Commission;
(d) "Business Reforms" means the Company-wide conduct and activities
described in Attachment B to this Consent Decree;
(e) "Company Station" and "Company Stations" means one or more AM or FM
radio broadcast stations licensed to Company pursuant to authorizations
issued by the FCC;
(f) "Commission" or "FCC" means the Federal Communications Commission or
its staff acting on delegated authority;
(g) "Complaints" means third-party complaints and/or information which may
have been received by, or is in the possession of, the Commission or the
Bureaus, alleging violations of the Sponsorship Identification Laws by
Company, by a Company Station or by any Company employee prior to the
effective date of the Adopting Order;
(h) "Compliance Plan" means that Company-wide program described in
Attachment A to this Consent Decree;
(i) "DOJ Settlement" means that certain Plea Agreement entered into by and
among Univision Services, Inc., the United States Attorney's Office for
the Central Division of California, and the Criminal Division of the
United States Department of Justice, United States District Court for the
Central Division of California, CR No. 10-00731 (filed July 7, 2010).
(j) "Effective Date" means the date on which the Bureaus release the
Adopting Order;
(k) "Final Order" means the status of the Adopting Order after the period
for administrative and judicial review has lapsed;
(l) "Investigations" means any investigation of alleged violations of the
Sponsorship Identification Laws by Company, any Company Station, or any
Company employee;
(m) "Parties" means Company and the Bureaus;
(n) "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations; and
(o) "Sponsorship Identification Laws" means, individually or collectively,
47 U.S.C. S: 317, 47 U.S.C. S: 508, 47 C.F.R. S: 73.1212, and/or any
Commission policy relating to sponsorship identification or the practices
commonly referred to as "payola" or "plugola."
I. BACKGROUND
3. The Bureaus and Company acknowledge that any proceedings that might
result from the Investigations and/or the Complaints would be
time-consuming and would require substantial expenditure of public and
private resources.
4. In order to conserve such resources, to ensure continued compliance by
Company with the Sponsorship Identification Laws, and to effectuate
business reforms in the broadcasting and music industry, the Bureaus and
Company are entering into this Consent Decree in consideration of the
mutual commitments made herein.
II. AGREEMENT
5. The Parties agree that the provisions of this Consent Decree shall be
subject to approval by the Bureaus by incorporation of such provisions
by reference in an Adopting Order.
6. The Parties agree that this Consent Decree shall become effective on
the date on which the Bureaus release the Adopting Order. Upon
release, the Adopting Order and this Consent Decree shall have the
same force and effect as any other orders of the Commission and any
violation of the terms of this Consent Decree shall constitute a
violation of a Commission order, entitling the Commission to exercise
any rights and remedies attendant to the enforcement of a Commission
order.
7. Company agrees that the Bureaus have jurisdiction over the matters
contained in this Consent Decree and the authority to enter into and
adopt this Consent Decree.
8. As part of the Adopting Order, the Bureaus shall terminate all
Investigations and shall dismiss any Complaints with prejudice. From
and after the Effective Date, the Bureaus shall not, either on their
own motion, in response to any petition to deny or other third-party
complaint or objection, or in response to any request from any other
federal, state or local agency, initiate (or make any recommendation
to the Commission that it initiate) any inquiries, investigations,
forfeiture proceedings, hearings, or other sanctions or actions
against Company or any Company Station, or any entity or station
directly or indirectly controlled by, or under common control with,
Company, with respect to any license or pending or future application
to which Company, or any entity or station directly or indirectly
controlled by, or under common control with, Company, is a party
(including, without limitation, any application for a new station, for
renewal of license, for assignment of license, or for transfer of
control), or any Company employee, based in whole or in part on: (i)
the Investigations; (ii) the Complaints; (iii) any other
investigations or complaints alleging a violation by Company, any
Company Station, or any current or former Company employee of the
Sponsorship Identification Laws occurring prior to the Effective Date;
(iv) the DOJ Settlement; (v) the allegations contained in any of the
foregoing, (vi) the underlying facts or conduct that relate to any of
the foregoing; or (vii) any act or omission of Company or any Company
employee occurring prior to the Effective Date and relating to any of
the foregoing. Without limitation to the foregoing, the FCC: (a) shall
not use the facts of this Consent Decree, the Investigations, the
Complaints, any other similar complaints alleging violation by any
Company Station of the Sponsorship Identification Laws with respect to
any broadcast occurring prior to the Effective Date, the DOJ
Settlement, or the underlying facts, behavior, or broadcasts that
relate to any of the foregoing, for any purpose relating to Company,
any Company Station, any Company employee, or any entity or station
directly or indirectly controlled by, or under common control with,
Company; (b) shall not on its own motion provide any information
within its possession in connection with any of the foregoing to any
other federal, state or local agency, or request any such agency to
investigate or pursue enforcement action with respect thereto; and (c)
shall treat all such matters as null and void for all purposes.
9. Company has had in place policies and procedures to deter employees
from engaging in conduct that violates the Sponsorship Identification
Laws, but is willing to adopt a new plan in an effort to enhance the
effectiveness of Company's efforts. Accordingly, Company agrees to
implement a Compliance Plan and new, more expansive, Company-wide
Business Reforms designed to help ensure that the conduct and
broadcasts by Company, Company Stations and/or its employees will not
violate the Sponsorship Identification Laws. Summaries of the
Compliance Plan and the Business Reforms are set forth in Attachments
A and B hereto, respectively. Company agrees to implement the Business
Reforms and the Compliance Plan within sixty (60) days of the
Effective Date and to keep such Business Reforms and Compliance Plan
in effect for three (3) years after the Effective Date. In the event
that Company wishes to revise any material aspect of the Business
Reforms or the Compliance Plan, Company will provide the Bureaus
advance written notice of the proposed changes. Company may implement
such changes if either of the Bureaus does not object to them within
thirty (30) days of their submission by Company.
10. Company will make a voluntary contribution to the United States
Treasury in the amount of One Million Dollars ($1,000,000.00) within
thirty (30) days after the Adopting Order, adopting this Consent
Decree, has become a Final Order. If Univision Services, Inc., has,
prior thereto, paid in full the fine pursuant to the DOJ Settlement,
then the amount of Company's payment of the Voluntary Contribution
shall be reduced by the amount of the fine. Company will make this
contribution without further protest or recourse, by check or similar
instrument, payable to the order of the Federal Communications
Commission, payable as follows: Payment by check or money order may be
mailed to Federal Communications Commission, P.O. Box 979088, St.
Louis, MO 63197-9000. Payment by overnight mail may be sent to U.S.
Bank - Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza,
St. Louis, MO 63101. Payments by wire transfer may be made to ABA
Number 021030004, receiving bank TREAS/NYC, and account number
27000001. For payment by credit card, an FCC Form 159 (Remittance
Advice) must be submitted. When completing the FCC Form 159, enter
the Account Number in block number 23A (call sign/other ID), and enter
the letters "FORF" in block number 24A (payment type code). Company
will also send an electronic notification on the date said payment is
made to: Hillary S. DeNigro (Hillary.Denigro@fcc.gov), Benigno E.
Bartolome (Ben.Bartolome@fcc.gov), Kenneth M. Scheibel, Jr.
(Kenneth.Scheibel@fcc.gov), and Peter H. Doyle (Peter.Doyle@fcc.gov).
The payment should reference Acct. No. 201032080008 and FRN
0004945838.
11. Company waives any and all rights it may have to seek administrative
or judicial reconsideration, review, appeal or stay, or to otherwise
challenge or contest the validity of this Consent Decree and the
Adopting Order, provided no modifications are made to the Consent
Decree adverse to Company or any Company Station. If the Commission,
or the United States acting on its behalf, brings a judicial action to
enforce the terms of the Adopting Order or this Consent Decree, or
both, Company will not contest the validity of this Consent Decree or
of the Adopting Order, and will waive any statutory right to a trial
de novo. If Company brings a judicial action to enforce the terms of
the Adopting Order or this Consent Decree, or both, the Commission
will not contest the validity of this Consent Decree or the Adopting
Order.
12. Company takes seriously its responsibilities as a licensee to operate
the Company Stations in the public interest and to abide by FCC rules
and policies, and its management has had in place policies and
procedures that are designed to ensure compliance with those rules and
policies. Despite these efforts, Company agrees, solely for the
purpose of this Consent Decree and for FCC civil enforcement purposes,
and in express reliance on the provisions of Paragraph 8 hereof, and
for no other purpose or to other effect, that Company has conducted an
internal investigation with respect to the matters subject to the
Investigations and Complaints, and Company's policies and practices
with respect to the Sponsorship Identification Laws can be improved so
as to further enhance the prospects for Company-wide compliance. By
entering into this Consent Decree, Company makes no admission of
liability or violation of any law, regulation or policy, and the
Commission makes no finding of any such liability or violation.
13. In the event that this Consent Decree is rendered invalid in any court
of competent jurisdiction, it shall become null and void and may not
be used in any manner in any legal proceeding.
14. Company hereby agrees to waive any claims it may otherwise have under
the Equal Access to Justice Act, 5 U.S.C. S: 504 and 47 C.F.R.
S: 1.1501 et seq., relating to the matters addressed in this Consent
Decree.
15. Each party represents and warrants to the other that it has full power
and authority to enter into this Consent Decree.
16. This Consent Decree may be executed in counterparts (including by
facsimile), each of which, when so executed and delivered, shall be an
original, and all of which counterparts together shall constitute one
and the same fully executed instrument.
ENFORCEMENT BUREAU
By: ________________________________
P. Michele Ellison, Chief
Date:
MEDIA BUREAU
By: ________________________________
William T. Lake, Chief
Date:
UNIVISION RADIO, INC.
(For itself and on behalf of its direct and indirect subsidiaries, and on
behalf of WLII/WSUR Licensee Partnership with respect solely to its FCC AM
or FM radio station authorizations)
By: _________________________________
Phyllis B. Verdugo, Senior Vice President/Deputy General Counsel and
Assistant Secretary
Date:
ATTACHMENT A
Company Compliance Plan
Company will implement a Company-wide Compliance Plan for the purpose of
furthering compliance with the Sponsorship Identification Laws and
adherence to the Business Reforms set forth in Attachment B. The
Compliance Plan consists of the following components:
I. Commitment to High Standards on Pay-for-Play; Annual Reports.
A. Commitment to High Standards on Pay-for-Play. Company commits to
enforcing high standards with respect to the Sponsorship Identification
Laws to avoid violations and the appearance of impropriety in the area of
music selection.
B. Annual Reports.
1. The Compliance Officer, as defined below, shall submit annual reports
to Company's Board of Directors concerning Company's compliance with this
Agreement and with the Business Reforms for a period of three (3) years
from the effective date of this Agreement. Each such report will cover the
preceding 12-month period and shall be submitted within thirty (30)
calendar days thereafter.
2. The Company shall file a copy of each such report with the Commission
upon receipt from the Compliance Officer, certified as complete and
accurate by the Compliance Officer. Each such report shall describe, in
detail, any deviation in the Company's or Company's personnel's compliance
with the terms of the Compliance Plan or with the Business Reforms,
including: a specification of the dates of the conduct; identification by
name and job title of the Company personnel involved; identification of
the implicated Company stations; and a detailed description of the
programming at issue. The first such annual report shall also include: (i)
the names of the Compliance Officer and each Regional Compliance Contact,
as defined below, along with a sworn statement from an officer of the
Company that such individuals are fully qualified for the respective
positions; and (ii) the names and titles of the persons at the Company to
whom their reports, as described in Paragraph III of this Compliance Plan,
are submitted. Subsequent annual reports shall describe any personnel
changes of such individuals, along with a sworn statement from an officer
of the Company that such individuals are fully qualified for the
respective positions. The Company shall also include with each such annual
report copies of all reports submitted by the Compliance Officer during
the preceding 12-month period pursuant to Paragraph III.A of this
Compliance Plan. An officer of the Company shall certify to the accuracy
and completeness of each such Commission submission.
II. Training of Programming Personnel. Company will conduct appropriate
training of its employees who are on-air talent and/or materially
participate in the on-air broadcast of program material or in the making
of programming decisions and their supervisory employees ("Programming
Personnel") in the accompanying Business Reforms and the Sponsorship
Identification Laws, including training with respect to the FCC's
interpretation of such statutes and regulations regarding payola and
related issues. Such training will be provided to all current Company
Programming Personnel within sixty (60) days of the Effective Date. The
training will be provided to all new Company Programming Personnel
promptly after they commence their duties. Refresher training will be
provided to all employees described above at least once every twelve (12)
months.
III. Compliance Officer and Regional Compliance Contacts.
A. Compliance Officer. Within thirty (30) days of the Effective Date,
Company shall designate a Compliance Officer, whose responsibility shall
be to seek to ensure Company's compliance with the Business Reforms
attached to this Consent Order and with the Sponsorship Identification
Laws through the following duties: (i) implementing, effectuating, and
supervising the training program with regard to the Business Reforms and
the Sponsorship Identification Laws for all Company Programming Personnel;
(ii) being accessible by telephone and/or e-mail to any Company employee
who seeks advice on compliance with the Business Reforms and the
Sponsorship Identification Laws or who wishes to report potential
violations of such policies and laws; (iii) developing and implementing
procedures designed to ensure Company's continuing compliance with the
Business Reforms and the Sponsorship Identification Laws; (iv) monitoring
Company's compliance with the Business Reforms and the Sponsorship
Identification Laws; (v) reporting on a quarterly basis to the General
Counsel of Company regarding compliance of Company Stations and employees
with the Business Reforms and the Sponsorship Identification Laws; (vi)
reporting on an annual basis to Company's Board of Directors concerning
the compliance of the Company Stations with the Business Reforms and the
Sponsorship Identification Laws; and (vii) such other activities as the
Compliance Officer deems necessary or appropriate to carry out his or her
duties.
B. Regional Compliance Contacts. Within thirty (30) days of the Effective
Date, Company shall designate a Compliance Contact for each Company
business region in which there is a Company station that plays new music.
The Regional Compliance Contact shall work in conjunction with the Company
Compliance Officer in the implementation and monitoring of the Business
Reforms in such region.
IV. Database and Hotline.
A. Database. Company shall maintain all documentation required by Section
III.A in Attachment B of this Agreement for a period of not less than
three (3) years. The database(s) shall be available for inspection by the
Commission upon request.
B. Hotline. Company shall maintain a hotline for employees through which
they can reach the Compliance Officer to obtain advice on compliance with
the Business Reforms, and report violations of the Business Reforms and
maintain a log of all such calls, e-mails, meetings or other such employee
inquiries, providing for each: (i) the date of the call, e-mail, meeting
or other inquiry; (ii) the caller/inquiring party and his or her job title
with the Company and station; and (iii) the disposition by the Compliance
Officer and the date of such disposition.
V. Contractual Agreements. Company will ensure that all contractual
agreements with respect to Programming Personnel include a contractual
clause relating to compliance with the Sponsorship Identification Laws.
VI. FCC Enforcement Actions. If the Company receives a Notice of Apparent
Liability, Notice of Opportunity for Hearing, Order to Show Cause, or
Hearing Designation Order proposing a forfeiture and/or contemplating
license non-renewal or revocation as a result of a violation of the
Sponsorship Identification Laws occurring at a Company station after the
effective date of the Consent Decree, the following steps will be taken:
A. Each employee named in such Notice of Apparent Liability or other such
Commission document as having violated the Sponsorship Identification Laws
will be suspended and an investigation will immediately be undertaken.
B. Each such employee will be required to undergo remedial training on
Business Reforms and the Sponsorship Identification Laws and satisfy the
Compliance Officer and Company Station management that he or she
understands such regulations and policies before resuming his or her
duties.
C. If a Forfeiture Order, Order, or Memorandum Opinion and Order assessing
a forfeiture, denying a renewal application and/or revoking a license
issued by the FCC is finally adjudicated and Company is finally found to
have violated the Sponsorship Identification Laws that results in such
action by the Commission, the employee(s) materially involved in the
violation or violations that are the subject of such Commission or Bureau
action will be subject to further disciplinary action, up to and including
termination.
ATTACHMENT B
Company Business Reforms
Company will implement on a Company-wide basis, certain business reforms
for the purpose of furthering compliance with the Sponsorship
Identification Laws. To the extent not already undertaken, within sixty
(60) days of the Effective Date of the Consent Decree to which this
statement is attached, Company shall implement and adhere to the following
practices ("Business Reforms").
I. Prohibited Activity.
A. Record Label and Record Label Employees. Neither Company, any Company
Station, nor any Company employee (collectively, "Company Parties")
shall solicit, receive, or accept cash or any other item of value from
a Record Label or Record Label employee in, or as part of, an
exchange, agreement, or understanding to provide or increase airplay
of music provided by any Record Label, except as expressly permitted
under Paragraph II, below, and provided that all such activity
complies with applicable Sponsorship Identification Laws. As used in
these Business Reforms, the term "Record Label" means: (i) any entity
that manufactures or distributes audio recordings of music; (ii) any
artist under contract to a Record Label (an "Artist"); and (iii) any
representative of the Record Label or an Artist, including independent
promoters.
B. Independent Music Promoters. Company Parties shall not accept any item
of value from an independent music promoter, unless that promoter
certifies in writing to Company that no compensation to the promoter
from a Record Label is based upon airplay.
II. Permissible Restricted Activity. Company Parties may engage in the
following activities with Record Labels, subject in each case to
compliance with the Sponsorship Identification Laws and the following
restrictions, and to adherence with the disclosure and documentation
requirements set forth in Paragraph III, below.
A. Contests or Giveaways. Company Parties may solicit, receive and accept
items of value, including but not limited to promotional items, gift
cards, CDs, gift certificates, concert tickets, airfare, hotel rooms,
vouchers and cash, from Record Labels to give away on the air, at a
Company Station event or promotion, or for the benefit of charity, to
persons or entities other than Company employees (or members of their
immediate families or households). Contest rules and on-air announcements
relating to such contests shall clearly indicate the value of the prize(s)
as required by FCC rules and identify the Record Label as the provider of
the prize(s) to be awarded.
B. Advertising. Company Parties may solicit, receive and accept payment
(in cash or other items of value) from Record Labels for on-air
advertising, provided that the announcement clearly identifies the Record
Label as the sponsor of the advertisement.
C. Other Commercial Transactions. Company Parties may enter into
commercial transactions with Record Labels pursuant to which a Company and
a Record Label may license, sell or otherwise agree to distribute or
promote the Record Labels' Artists, songs or records.
D. Artist Appearances and Performances. Company Parties may arrange for
Artists to appear or perform at events or interviews, including under
circumstances where a Record Label has subsidized reasonable costs related
to the appearance, performance or interview. Company Stations' on-air
announcements of an Artist's performance that is subsidized in any part by
the Record Label shall indicate clearly that the Artist's appearance is
sponsored by the Record Label. The broadcast on a Company Station of all
or a portion of the Artist's live performance at the event is permitted,
provided that any such broadcast complies with the Sponsorship
Identification Laws.
E. Nominal Consideration. Company Parties may solicit, receive and accept
the following items of value from Record Labels for use by a Company
Station:
1. CDs and other promotional items of nominal value. A Company Station may
solicit, receive and accept from Record Labels: (i) electronic copies of
songs and up to twenty (20) copies of the same CD to familiarize Company
employees with recordings; (ii) electronic copies of recordings for
posting on Company Station websites to familiarize visitors to such
websites with the Artists' recordings; and (iii) promotional items
intended for the personal use of Company Parties, if the value of each
such individual item does not exceed $25, such as T-shirts, key chains,
coffee mugs, baseball hats, posters, pens and bumper stickers.
2. Concert tickets. A Company Station may solicit, receive and accept up
to twenty (20) tickets (which may include associated backstage or
"VIP"-type passes) for a single-day concert, for each day of a multi-day
concert, and/or to an industry event to be used by Company employees to
familiarize them with the performing Artists. Tickets provided by Record
Labels for Company employees who are working at the concert and/or
industry event (e.g., technicians, on-air talent, promotions staff, etc.)
shall be subject to the disclosure and documentation provisions of
Paragraph III, below, but shall not be counted towards the twenty (20)
ticket limit.
3. Modest personal gifts for life event, professional achievement and
holidays, or gifts commemorating achievement by Company or a Record Label.
Company employees may receive and accept reasonable gifts from a Record
Label commemorating life events, professional achievements and holidays. A
"reasonable" gift is one whose value the employee has no reason to believe
is greater than $150. An example of a life event would include a birthday,
wedding or the birth of a child. An example of a professional event would
be a job promotion or winning a music industry award. A Company Station
may receive and accept from a Record Label gifts that commemorate
achievements of Company, the Company Station, the Record Label, or the
Record Label's Artists. An example of such a gift would be a plaque
commemorating an Artist's achieving "gold record" level sales.
4. Meals and entertainment. Company employees may receive and accept meals
and entertainment in an amount not to exceed $150 per person, per event,
provided that the event is attended by a Record Label employee and has a
legitimate business purpose, and any payment is consistent with the value
of the meal or entertainment. Company employees may receive and accept
meals and entertainment from a Record Label in an amount that exceeds $150
per person, provided that the event is attended by a Record Label
employee, has a legitimate business purpose, and is approved in writing by
the Compliance Officer, as provided in the accompanying Compliance Plan. A
Company employee may also receive and accept meals and entertainment from
a Record Label for the benefit of his/her spouse or significant other
accompanying the employee at such occasion, consistent with and subject to
the limitations of this provision.
5. Travel and lodging expenses. A Company Station may receive and accept
from a Record Label reasonable travel and lodging expenses for Company
employees to attend live performances or appearances by Artists for the
purpose of familiarizing such employees with a Record Label's Artists. A
Company Station may also receive and accept from a Record Label reasonable
travel and lodging expenses to industry events if the Company Station
provides, to the satisfaction and approval of the Compliance Officer, a
legitimate business purpose underlying the Record Label's payment of such
expenses. Each Company Station shall be limited to twenty (20) such trips
annually, to be allocated among Company employees at the discretion of the
Company Station. For purposes of these Business Reforms, "reasonable
travel and lodging expenses" means commercial airfare (coach class), train
or car service and a sufficient number of nights lodging to accomplish the
intended business purpose. All travel and lodging expenditures must be
approved in advance and in writing by the Compliance Officer. A Company
employee may also receive and accept meals and entertainment during such
trips, consistent with and subject to Paragraph II.E.4, above.
F. Nothing herein shall prohibit a natural increase in airplay of an
Artist's music during the period surrounding and coinciding with (i) a
contest or giveaway that promotes that Artist and (ii) the Artist's
appearance or performance at an event, provided that, to the extent the
increase in airplay results from an agreement or understanding with the
Record Label or Artist, such increased airplay shall comply with the
Sponsorship Identification Laws.
III. Mandatory Documentation. Company shall record and document all
activity set forth in Paragraph II as follows, and provide copies of such
documentation upon Commission request:
A. Database record of items of value received from a Record Label. Company
shall establish and maintain one or more databases (collectively, the
"Database") containing a record identifying all items of value received by
each Company Station or Company employee from Record Labels (exclusive of
Artist performances and commercial transactions with Record Labels, and
exclusive of CDs and other promotional items of nominal value as defined
in Section II.E above), and the disposition of such items shall be
recorded as follows. In the case of each item of value that exceeds $25 in
value (on an individual per item basis) intended to be awarded in a
contest or given away by a Company Station, the Database shall record the
date and manner of disposition and recipient of each such item. Items
received for use by a Company Station or its employees (such as CDs for
review by station employees and concert tickets) shall be so recorded.
Items in excess of $25 received by Company or Company employees
personally or in connection with business-related meals, entertainment and
travel shall be recorded in the Database separately.
B. Contests or Giveaways. In addition to the documentation maintained in
the Database in each instance where Company solicits, receives or accepts
an item of value from a Record Label to give away on the air, Company
shall (i) verify in writing to the Record Label that the contest prize(s)
will not be given away to an employee of a Company Station (or to members
of their immediate families or households); and (ii) for each item of
value given away that exceeds the monetary reporting threshold established
by the Internal Revenue Service, maintain a record verifying that a
contest winner has been selected, including the full name and address of
the recipient of the prize, and provide this information, in writing, to
the Record Label upon request.
C. Advertising by Record Labels. All advertising by Record Labels shall be
subject to a written agreement and recorded in one or more separate
databases.
For purposes of this Order and attached Consent Decree, Univision or
Univision Radio, Inc. includes itself and on behalf of its direct and
indirect subsidiaries that hold FCC authorizations, and on behalf of
WLII/WSUR Licensee Partnership with respect solely to its AM or FM radio
station authorizations. See the attached Consent Decree.
See 47 U.S.C. S:S: 317, 508.
See 47 C.F.R. S: 73.1212.
See 47 U.S.C. S: 154(i).
See 47 C.F.R. S:S: 0.111, 0.311.
Dollar amounts in this section may be adjusted for inflation based on the
Consumer Price Index.
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